Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries First Hawaiian, Inc. Reports First Quarter 2024 Financial Results and Declares Dividend By: First Hawaiian, Inc. via GlobeNewswire April 26, 2024 at 08:00 AM EDT HONOLULU, April 26, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2024. “I’m pleased to report that we started 2024 with a solid first quarter,” said Bob Harrison, Chairman, President, and CEO. “We had strong earnings, continued excellent credit quality and continued to grow our capital levels.” On April 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 31, 2024, to stockholders of record at the close of business on May 20, 2024. First Quarter 2024 Highlights: Net income of $54.2 million, or $0.42 per diluted shareTotal loans and leases decreased $33.3 million versus prior quarterTotal deposits decreased $663.2 million versus prior quarterNet interest margin increased 10 basis points to 2.91%Recorded a $6.3 million provision for credit losses$4.1 million FDIC special assessment included in expensesBoard of Directors declared a quarterly dividend of $0.26 per share Balance SheetTotal assets were $24.3 billion as of March 31, 2024, a decrease of $647.3 million, or 2.6%, from $24.9 billion as of December 31, 2023. Gross loans and leases were $14.3 billion as of March 31, 2024, a decrease of $33.3 million, or 0.2%, from $14.4 billion as of December 31, 2023. Total deposits were $20.7 billion as of March 31, 2024, a decrease of $663.2 million, or 3.1%, from $21.3 billion as of December 31, 2023. Net Interest IncomeNet interest income for the first quarter of 2024 was $154.4 million, an increase of $2.6 million, or 1.7%, compared to $151.8 million for the prior quarter. The net interest margin was 2.91% in the first quarter of 2024, an increase of 10 basis points compared to 2.81% in the prior quarter. Provision ExpenseDuring the quarter ended March 31, 2024, we recorded a $6.3 million provision for credit losses. In the quarter ended December 31, 2023, we recorded a $5.3 million provision for credit losses. Noninterest IncomeNoninterest income was $51.4 million in the first quarter of 2024, a decrease of $7.0 million compared to noninterest income of $58.3 million in the prior quarter. Noninterest ExpenseNoninterest expense was $128.8 million in the first quarter of 2024, a decrease of $13.5 million compared to noninterest expense of $142.3 million in the prior quarter. The efficiency ratio was 62.2% and 67.3% for the quarters ended March 31, 2024 and December 31, 2023, respectively. TaxesThe effective tax rate was 23.3% and 24.0% for the quarters ended March 31, 2024 and December 31, 2023, respectively. Asset QualityThe allowance for credit losses was $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024, compared to $156.5 million, or 1.09% of total loans and leases, as of December 31, 2023. The reserve for unfunded commitments was $34.8 million as of March 31, 2024 compared to $35.6 million as of December 31, 2023. Net charge-offs were $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2024, compared to net charge-offs of $5.8 million, or 0.16% of average loans and leases on an annualized basis, for the quarter ended December 31, 2023. Total non-performing assets were $18.0 million, or 0.13% of total loans and leases and other real estate owned, on March 31, 2024, compared to total non-performing assets of $18.6 million, or 0.13% of total loans and leases and other real estate owned, on December 31, 2023. CapitalTotal stockholders' equity increased $27.7 million in the first quarter, and stood at $2.5 billion on March 31, 2024 and December 31, 2023. The tier 1 leverage, common equity tier 1 and total capital ratios were 8.80%, 12.55% and 13.75%, respectively, on March 31, 2024, compared with 8.64%, 12.39% and 13.57%, respectively, on December 31, 2023. The Company did not repurchase any shares in the first quarter. First Hawaiian, Inc.First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com. Conference Call Information First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call by phone, please register via the following link: https://register.vevent.com/register/BIb74728f7f2a14341b3028eb985e2ddf0, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023. Use of Non-GAAP Financial MeasuresReturn on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 12 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. Investor Relations Contact: Kevin Haseyama, CFA(808) 525-6268khaseyama@fhb.comMedia Contact:Lindsay Chambers(808) 525-6254lchambers@fhb.com Financial Highlights Table 1 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share data) 2024 2023 2023 Operating Results: Net interest income $ 154,427 $151,793 $167,247 Provision for credit losses 6,300 5,330 8,800 Noninterest income 51,371 58,347 49,023 Noninterest expense 128,813 142,307 118,567 Net income 54,220 47,502 66,818 Basic earnings per share 0.42 0.37 0.52 Diluted earnings per share 0.42 0.37 0.52 Dividends declared per share 0.26 0.26 0.26 Dividend payout ratio 61.90% 70.27% 50.00%Performance Ratios(1): Net interest margin 2.91% 2.81% 3.11%Efficiency ratio 62.15% 67.28% 54.46%Return on average total assets 0.90% 0.77% 1.10%Return on average tangible assets (non-GAAP)(2) 0.94% 0.81% 1.15%Return on average total stockholders' equity 8.73% 7.94% 11.78%Return on average tangible stockholders' equity (non-GAAP)(2) 14.53% 13.66% 20.78%Average Balances: Average loans and leases $ 14,312,563 $14,349,322 $14,079,337 Average earning assets 21,481,890 21,688,816 21,873,259 Average assets 24,187,207 24,404,727 24,548,124 Average deposits 20,571,930 20,908,221 21,468,624 Average stockholders' equity 2,496,840 2,374,669 2,299,422 Market Value Per Share: Closing 21.96 22.86 20.63 High 23.12 23.22 28.28 Low 20.37 17.18 19.68 As of As of As of March 31, December 31, March 31, (dollars in thousands, except per share data) 2024 2023 2023 Balance Sheet Data: Loans and leases $ 14,320,208 $14,353,497 $14,221,272 Total assets 24,279,186 24,926,474 24,884,207 Total deposits 20,669,481 21,332,657 21,281,500 Short-term borrowings 500,000 500,000 250,000 Long-term borrowings — — 500,000 Total stockholders' equity 2,513,761 2,486,066 2,329,012 Per Share of Common Stock: Book value $ 19.66 $19.48 $18.26 Tangible book value (non-GAAP)(2) 11.88 11.68 10.45 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.13% 0.13% 0.10%Allowance for credit losses for loans and leases / total loans and leases 1.12% 1.09% 1.03% Capital Ratios: Common Equity Tier 1 Capital Ratio 12.55% 12.39% 11.97%Tier 1 Capital Ratio 12.55% 12.39% 11.97%Total Capital Ratio 13.75% 13.57% 13.09%Tier 1 Leverage Ratio 8.80% 8.64% 8.26%Total stockholders' equity to total assets 10.35% 9.97% 9.36%Tangible stockholders' equity to tangible assets (non-GAAP)(2) 6.52% 6.23% 5.58% Non-Financial Data: Number of branches 50 50 51 Number of ATMs 275 275 296 Number of Full-Time Equivalent Employees 2,065 2,089 2,100 _____________________________ (1) Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 12, GAAP to Non-GAAP Reconciliation. Consolidated Statements of Income Table 2 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2024 2023 2023Interest income Loans and lease financing $ 199,844 $196,276 $172,339Available-for-sale investment securities 14,546 19,033 18,688Held-to-maturity investment securities 17,793 17,987 18,957Other 12,769 7,734 3,561Total interest income 244,952 241,030 213,545Interest expense Deposits 84,143 82,215 43,284Short-term and long-term borrowings 5,953 6,232 2,563Other 429 790 451Total interest expense 90,525 89,237 46,298Net interest income 154,427 151,793 167,247Provision for credit losses 6,300 5,330 8,800Net interest income after provision for credit losses 148,127 146,463 158,447Noninterest income Service charges on deposit accounts 7,546 7,646 7,231Credit and debit card fees 16,173 16,381 16,298Other service charges and fees 9,904 9,535 9,162Trust and investment services income 10,354 9,645 9,614Bank-owned life insurance 4,286 5,063 5,120Investment securities gains, net — 792 —Other 3,108 9,285 1,598Total noninterest income 51,371 58,347 49,023Noninterest expense Salaries and employee benefits 59,262 55,882 56,032Contracted services and professional fees 15,739 16,219 16,313Occupancy 6,941 7,561 7,782Equipment 13,413 12,547 9,736Regulatory assessment and fees 8,120 20,412 3,836Advertising and marketing 2,612 1,441 1,994Card rewards program 8,508 7,503 8,085Other 14,218 20,742 14,789Total noninterest expense 128,813 142,307 118,567Income before provision for income taxes 70,685 62,503 88,903Provision for income taxes 16,465 15,001 22,085Net income $ 54,220 $47,502 $66,818Basic earnings per share $ 0.42 $0.37 $0.52Diluted earnings per share $ 0.42 $0.37 $0.52Basic weighted-average outstanding shares 127,707,354 127,612,734 127,453,820Diluted weighted-average outstanding shares 128,217,689 128,028,964 128,033,812 Consolidated Balance Sheets Table 3 March 31, December 31, March 31, (dollars in thousands, except share amount) 2024 2023 2023Assets Cash and due from banks $ 202,121 $185,015 $253,705 Interest-bearing deposits in other banks 1,072,145 1,554,882 611,887 Investment securities: Available-for-sale, at fair value (amortized cost: $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,427,708 as of March 31, 2023) 2,159,338 2,255,336 3,054,280 Held-to-maturity, at amortized cost (fair value: $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,824,478 as of March 31, 2023) 3,988,011 4,041,449 4,261,361 Loans held for sale — 190 — Loans and leases 14,320,208 14,353,497 14,221,272 Less: allowance for credit losses 159,836 156,533 147,122 Net loans and leases 14,160,372 14,196,964 14,074,150 Premises and equipment, net 281,181 281,461 278,121 Other real estate owned and repossessed personal property — — 91 Accrued interest receivable 85,715 84,417 79,200 Bank-owned life insurance 484,193 479,907 473,255 Goodwill 995,492 995,492 995,492 Mortgage servicing rights 5,533 5,699 6,299 Other assets 845,085 845,662 796,366 Total assets $ 24,279,186 $24,926,474 $24,884,207 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 13,620,928 $13,749,095 $12,579,155 Noninterest-bearing 7,048,553 7,583,562 8,702,345 Total deposits 20,669,481 21,332,657 21,281,500 Short-term borrowings 500,000 500,000 250,000 Long-term borrowings — — 500,000 Retirement benefits payable 102,242 103,285 101,622 Other liabilities 493,702 504,466 422,073 Total liabilities 21,765,425 22,440,408 22,555,195 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023) 1,417 1,413 1,413 Additional paid-in capital 2,551,488 2,548,250 2,540,653 Retained earnings 858,494 837,859 769,791 Accumulated other comprehensive loss, net (523,780) (530,210) (611,679)Treasury stock (13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,717,406 shares as of March 31, 2023) (373,858) (371,246) (371,166)Total stockholders' equity 2,513,761 2,486,066 2,329,012 Total liabilities and stockholders' equity $ 24,279,186 $24,926,474 $24,884,207 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 858.6 $ 11.6 5.45%$568.0 $7.8 5.39%$299.6 $3.4 4.60%Available-for-Sale Investment Securities Taxable 2,210.6 14.5 2.63 2,598.4 19.0 2.92 3,081.4 18.4 2.39 Non-Taxable 1.8 — 5.61 1.9 — 5.12 31.1 0.4 5.55 Held-to-Maturity Investment Securities Taxable 3,416.4 14.6 1.71 3,472.1 14.8 1.70 3,683.8 15.7 1.70 Non-Taxable 603.4 4.0 2.65 603.9 3.9 2.58 612.2 4.1 2.74 Total Investment Securities 6,232.2 33.1 2.13 6,676.3 37.7 2.25 7,408.5 38.6 2.09 Loans Held for Sale 0.7 — 6.92 0.7 — 7.41 0.1 — 5.53 Loans and Leases(1) Commercial and industrial 2,164.9 37.2 6.92 2,148.1 36.7 6.78 2,192.9 32.4 5.98 Commercial real estate 4,323.5 70.1 6.53 4,356.3 71.4 6.51 4,105.7 58.3 5.76 Construction 924.7 17.4 7.55 888.7 16.7 7.45 873.9 14.7 6.83 Residential: Residential mortgage 4,264.1 42.0 3.94 4,294.8 38.8 3.61 4,307.0 38.4 3.57 Home equity line 1,172.1 12.0 4.13 1,174.8 11.3 3.83 1,074.9 8.7 3.27 Consumer 1,083.5 18.1 6.71 1,132.4 18.4 6.43 1,213.5 17.2 5.75 Lease financing 379.8 3.7 3.91 354.2 3.6 4.03 311.4 3.1 4.10 Total Loans and Leases 14,312.6 200.5 5.63 14,349.3 196.9 5.45 14,079.3 172.8 4.96 Other Earning Assets 77.8 1.2 5.90 94.5 — 0.06 85.8 0.2 0.76 Total Earning Assets(2) 21,481.9 246.4 4.61 21,688.8 242.4 4.44 21,873.3 215.0 3.97 Cash and Due from Banks 244.3 240.8 286.1 Other Assets 2,461.0 2,475.1 2,388.7 Total Assets $ 24,187.2 $24,404.7 $24,548.1 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,059.7 $ 23.4 1.56%$6,067.2 $22.4 1.46% 6,354.3 $13.9 0.89%Money Market 3,944.9 28.8 2.94 3,905.0 27.5 2.79 3,853.5 14.3 1.50 Time 3,325.3 31.9 3.86 3,390.7 32.3 3.78 2,515.6 15.1 2.44 Total Interest-Bearing Deposits 13,329.9 84.1 2.54 13,362.9 82.2 2.44 12,723.4 43.3 1.38 Federal Funds Purchased — — — — — — 67.1 0.7 4.43 Other Short-Term Borrowings 500.0 6.0 4.79 515.2 6.2 4.80 52.8 0.7 5.02 Long-Term Borrowings — — — — — — 105.5 1.2 4.52 Other Interest-Bearing Liabilities 33.0 0.4 5.22 42.1 0.8 7.44 42.8 0.4 4.27 Total Interest-Bearing Liabilities 13,862.9 90.5 2.63 13,920.2 89.2 2.54 12,991.6 46.3 1.45 Net Interest Income $ 155.9 $153.2 $168.7 Interest Rate Spread(3) 1.98% 1.90% 2.52%Net Interest Margin(4) 2.91% 2.81% 3.11%Noninterest-Bearing Demand Deposits 7,242.0 7,545.3 8,745.2 Other Liabilities 585.5 564.5 511.9 Stockholders' Equity 2,496.8 2,374.7 2,299.4 Total Liabilities and Stockholders' Equity $ 24,187.2 $24,404.7 $24,548.1 _____________________________ (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $1.5 million, $1.4 million and $1.4 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets. Analysis of Change in Net Interest Income Table 5 Three Months Ended March 31, 2024 Compared to December 31, 2023(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 3.8 $ — $ 3.8 Available-for-Sale Investment Securities Taxable (2.7) (1.8) (4.5)Held-to-Maturity Investment Securities Taxable (0.3) 0.1 (0.2)Non-Taxable — 0.1 0.1 Total Investment Securities (3.0) (1.6) (4.6)Loans and Leases Commercial and industrial 0.1 0.4 0.5 Commercial real estate (1.2) (0.1) (1.3)Construction 0.5 0.2 0.7 Residential: Residential mortgage (0.3) 3.5 3.2 Home equity line — 0.7 0.7 Consumer (0.9) 0.6 (0.3)Lease financing 0.2 (0.1) 0.1 Total Loans and Leases (1.6) 5.2 3.6 Other Earning Assets — 1.2 1.2 Total Change in Interest Income (0.8) 4.8 4.0 Change in Interest Expense: Interest-Bearing Deposits Savings (0.1) 1.1 1.0 Money Market 0.2 1.1 1.3 Time (0.8) 0.4 (0.4)Total Interest-Bearing Deposits (0.7) 2.6 1.9 Other Short-Term Borrowings (0.2) — (0.2)Other Interest-Bearing Liabilities (0.2) (0.2) (0.4)Total Change in Interest Expense (1.1) 2.4 1.3 Change in Net Interest Income $ 0.3 $ 2.4 $ 2.7 Analysis of Change in Net Interest Income Table 6 Three Months Ended March 31, 2024 Compared to March 31, 2023(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 7.5 $ 0.7 $ 8.2 Available-for-Sale Investment Securities Taxable (5.6) 1.7 (3.9)Non-Taxable (0.4) — (0.4)Held-to-Maturity Investment Securities Taxable (1.2) 0.1 (1.1)Non-Taxable — (0.1) (0.1)Total Investment Securities (7.2) 1.7 (5.5)Loans and Leases Commercial and industrial (0.4) 5.2 4.8 Commercial real estate 3.3 8.5 11.8 Construction 1.0 1.7 2.7 Residential: Residential mortgage (0.4) 4.0 3.6 Home equity line 0.8 2.5 3.3 Consumer (1.9) 2.8 0.9 Lease financing 0.7 (0.1) 0.6 Total Loans and Leases 3.1 24.6 27.7 Other Earning Assets — 1.0 1.0 Total Change in Interest Income 3.4 28.0 31.4 Change in Interest Expense: Interest-Bearing Deposits Savings (0.7) 10.2 9.5 Money Market 0.3 14.2 14.5 Time 6.0 10.8 16.8 Total Interest-Bearing Deposits 5.6 35.2 40.8 Federal Funds Purchased (0.3) (0.4) (0.7)Other Short-Term Borrowings 5.3 — 5.3 Long-Term Borrowings (0.6) (0.6) (1.2)Other Interest-Bearing Liabilities (0.1) 0.1 — Total Change in Interest Expense 9.9 34.3 44.2 Change in Net Interest Income $ (6.5) $ (6.3) $ (12.8) Loans and Leases Table 7 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Commercial and industrial $ 2,189,875 $2,165,349 $2,268,332Commercial real estate 4,301,300 4,340,243 4,106,200Construction 972,517 900,292 913,959Residential: Residential mortgage 4,242,502 4,283,315 4,318,742Home equity line 1,165,778 1,174,588 1,095,365Total residential 5,408,280 5,457,903 5,414,107Consumer 1,054,227 1,109,901 1,191,552Lease financing 394,009 379,809 327,122Total loans and leases $ 14,320,208 $14,353,497 $14,221,272 Deposits Table 8 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Demand $ 7,048,553 $7,583,562 $8,702,345Savings 6,277,679 6,445,084 6,173,398Money Market 4,059,204 3,847,853 3,818,355Time 3,284,045 3,456,158 2,587,402 Total Deposits $ 20,669,481 $21,332,657 $21,281,500 Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 9 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 942 $970 $1,158Commercial real estate 2,953 2,953 727Total Commercial Loans 3,895 3,923 1,885Residential Loans: Residential mortgage 7,777 7,620 6,896Home equity line 6,345 7,052 4,903Total Residential Loans 14,122 14,672 11,799Total Non-Accrual Loans and Leases 18,017 18,595 13,684Other Real Estate Owned — — 91Total Non-Performing Assets $ 18,017 $18,595 $13,775 Accruing Loans and Leases Past Due 90 Days or More Commercial Loans: Commercial and industrial $ 529 $494 $461Commercial real estate — 300 1,346Construction 606 — 102Total Commercial Loans 1,135 794 1,909Residential mortgage 359 — 58Consumer 2,126 2,702 2,502Total Accruing Loans and Leases Past Due 90 Days or More $ 3,620 $3,496 $4,469 Total Loans and Leases $ 14,320,208 $14,353,497 $14,221,272 Allowance for Credit Losses and Reserve for Unfunded Commitments Table 10 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Balance at Beginning of Period $ 192,138 $192,570 $177,735 Loans and Leases Charged-Off Commercial Loans: Commercial and industrial (909) (910) (791) Commercial real estate — (2,500) — Total Commercial Loans (909) (3,410) (791) Residential Loans: Residential mortgage — — (122) Home equity line — (20) (135) Total Residential Loans — (20) (257) Consumer (4,854) (4,147) (4,782) Total Loans and Leases Charged-Off (5,763) (7,577) (5,830) Recoveries on Loans and Leases Previously Charged-Off Commercial and industrial 211 171 246 Residential Loans: Residential mortgage 30 31 27 Home equity line 44 163 177 Total Residential Loans 74 194 204 Consumer 1,689 1,450 2,166 Total Recoveries on Loans and Leases Previously Charged-Off 1,974 1,815 2,616 Net Loans and Leases Charged-Off (3,789) (5,762) (3,214) Provision for Credit Losses 6,300 5,330 8,800 Balance at End of Period $ 194,649 $192,138 $183,321 Components: Allowance for Credit Losses $ 159,836 $156,533 $147,122 Reserve for Unfunded Commitments 34,813 35,605 36,199 Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 194,649 $192,138 $183,321 Average Loans and Leases Outstanding $ 14,312,563 $14,349,322 $14,079,337 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) 0.11 % 0.16 % 0.09 %Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.12 % 1.09 % 1.03 %Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases 8.87x 8.42x 10.75x _____________________________ (1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. Loans and Leases by Year of Origination and Credit Quality Indicator Table 11 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis TotalCommercial Lending Commercial and Industrial Risk rating: Pass $ 13,488 $ 104,265 $ 263,282 $ 318,417 $ 29,787 $ 282,287 $ 987,132 $ 26,745 $ 2,025,403Special Mention 202 1 23,276 73 539 1,385 8,132 — 33,608Substandard — — 20,364 214 572 2,191 25,638 — 48,979Other (1) 4,887 12,883 10,053 4,044 1,970 2,396 45,652 — 81,885Total Commercial and Industrial 18,577 117,149 316,975 322,748 32,868 288,259 1,066,554 26,745 2,189,875Current period gross charge-offs — 71 114 61 52 611 — — 909 Commercial Real Estate Risk rating: Pass 28,321 344,674 864,166 671,379 334,606 1,866,875 93,485 4,223 4,207,729Special Mention 3,339 2,290 7,591 41,337 1,358 18,507 6,863 — 81,285Substandard — — 5,047 1,203 — 5,244 652 — 12,146Other (1) — — — — — 140 — — 140Total Commercial Real Estate 31,660 346,964 876,804 713,919 335,964 1,890,766 101,000 4,223 4,301,300Current period gross charge-offs — — — — — — — — — Construction Risk rating: Pass 14,198 181,628 311,175 258,400 59,563 65,776 11,872 — 902,612Special Mention — — — — — 837 — — 837Substandard — — — — — 24,437 — — 24,437Other (1) 859 12,258 17,492 6,373 1,357 5,588 704 — 44,631Total Construction 15,057 193,886 328,667 264,773 60,920 96,638 12,576 — 972,517Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 50,531 114,686 78,028 17,488 28,946 97,319 — — 386,998Special Mention — 51 125 377 20 — — — 573Substandard 5,370 676 392 — — — — — 6,438Total Lease Financing 55,901 115,413 78,545 17,865 28,966 97,319 — — 394,009Current period gross charge-offs — — — — — — — — — Total Commercial Lending $ 121,195 $ 773,412 $ 1,600,991 $ 1,319,305 $ 458,718 $ 2,372,982 $ 1,180,130 $ 30,968 $ 7,857,701Current period gross charge-offs $ — $ 71 $ 114 $ 61 $ 52 $ 611 $ — $ — $ 909 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis TotalResidential Lending Residential Mortgage FICO: 740 and greater $ 28,332 $ 207,263 $ 524,402 $ 987,343 $ 521,598 $ 1,186,496 $ — $ — $ 3,455,434680 - 739 1,525 36,569 67,192 115,481 67,662 158,890 — — 447,319620 - 679 910 2,910 16,268 19,056 12,733 41,573 — — 93,450550 - 619 — 1,303 6,506 1,903 2,477 11,685 — — 23,874Less than 550 — — — 2,894 2,006 6,686 — — 11,586No Score (3) — 9,081 20,505 11,400 6,006 58,777 — — 105,769Other (2) 1,419 13,320 16,937 15,740 12,088 32,590 12,976 — 105,070Total Residential Mortgage 32,186 270,446 651,810 1,153,817 624,570 1,496,697 12,976 — 4,242,502Current period gross charge-offs — — — — — — — — — Home Equity Line FICO: 740 and greater — — — — — — 943,792 1,428 945,220680 - 739 — — — — — — 162,578 1,886 164,464620 - 679 — — — — — — 33,728 927 34,655550 - 619 — — — — — — 13,382 971 14,353Less than 550 — — — — — — 5,392 296 5,688No Score (3) — — — — — — 1,398 — 1,398Total Home Equity Line — — — — — — 1,160,270 5,508 1,165,778Current period gross charge-offs — — — — — — — — — Total Residential Lending $ 32,186 $ 270,446 $ 651,810 $ 1,153,817 $ 624,570 $ 1,496,697 $ 1,173,246 $ 5,508 $ 5,408,280Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Lending FICO: 740 and greater 18,671 82,551 113,914 66,175 28,100 22,442 116,198 138 448,189680 - 739 13,464 64,229 64,623 33,167 14,755 13,951 75,151 439 279,779620 - 679 4,293 28,729 27,210 15,641 6,793 10,003 35,179 791 128,639550 - 619 620 6,973 11,551 7,621 4,025 6,289 13,452 795 51,326Less than 550 110 2,634 6,734 5,075 2,837 4,179 5,782 646 27,997No Score (3) 733 839 209 — 9 16 39,466 256 41,528Other (2) — 304 349 960 330 1,032 73,794 — 76,769Total Consumer Lending $ 37,891 $ 186,259 $ 224,590 $ 128,639 $ 56,849 $ 57,912 $ 359,022 $ 3,065 $ 1,054,227Current period gross charge-offs $ — $ 437 $ 904 $ 496 $ 272 $ 769 $ 1,789 $ 187 $ 4,854 Total Loans and Leases $ 191,272 $ 1,230,117 $ 2,477,391 $ 2,601,761 $ 1,140,137 $ 3,927,591 $ 2,712,398 $ 39,541 $ 14,320,208Current period gross charge-offs $ — $ 508 $ 1,018 $ 557 $ 324 $ 1,380 $ 1,789 $ 187 $ 5,763 _____________________________ (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance. GAAP to Non-GAAP Reconciliation Table 12 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Income Statement Data: Net income $ 54,220 $47,502 $66,818 Average total stockholders' equity $ 2,496,840 $2,374,669 $2,299,422 Less: average goodwill 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,501,348 $1,379,177 $1,303,930 Average total assets $ 24,187,207 $24,404,727 $24,548,124 Less: average goodwill 995,492 995,492 995,492 Average tangible assets $ 23,191,715 $23,409,235 $23,552,632 Return on average total stockholders' equity(1) 8.73% 7.94% 11.78%Return on average tangible stockholders' equity (non-GAAP)(1) 14.53% 13.66% 20.78% Return on average total assets(1) 0.90% 0.77% 1.10%Return on average tangible assets (non-GAAP)(1) 0.94% 0.81% 1.15% As of As of As of March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2024 2023 2023 Balance Sheet Data: Total stockholders' equity $ 2,513,761 $2,486,066 $2,329,012 Less: goodwill 995,492 995,492 995,492 Tangible stockholders' equity $ 1,518,269 $1,490,574 $1,333,520 Total assets $ 24,279,186 $24,926,474 $24,884,207 Less: goodwill 995,492 995,492 995,492 Tangible assets $ 23,283,694 $23,930,982 $23,888,715 Shares outstanding 127,841,908 127,618,761 127,573,680 Total stockholders' equity to total assets 10.35% 9.97% 9.36%Tangible stockholders' equity to tangible assets (non-GAAP) 6.52% 6.23% 5.58% Book value per share $ 19.66 $19.48 $18.26 Tangible book value per share (non-GAAP) $ 11.88 $11.68 $10.45 _____________________________ (1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. 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First Hawaiian, Inc. Reports First Quarter 2024 Financial Results and Declares Dividend By: First Hawaiian, Inc. via GlobeNewswire April 26, 2024 at 08:00 AM EDT HONOLULU, April 26, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2024. “I’m pleased to report that we started 2024 with a solid first quarter,” said Bob Harrison, Chairman, President, and CEO. “We had strong earnings, continued excellent credit quality and continued to grow our capital levels.” On April 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 31, 2024, to stockholders of record at the close of business on May 20, 2024. First Quarter 2024 Highlights: Net income of $54.2 million, or $0.42 per diluted shareTotal loans and leases decreased $33.3 million versus prior quarterTotal deposits decreased $663.2 million versus prior quarterNet interest margin increased 10 basis points to 2.91%Recorded a $6.3 million provision for credit losses$4.1 million FDIC special assessment included in expensesBoard of Directors declared a quarterly dividend of $0.26 per share Balance SheetTotal assets were $24.3 billion as of March 31, 2024, a decrease of $647.3 million, or 2.6%, from $24.9 billion as of December 31, 2023. Gross loans and leases were $14.3 billion as of March 31, 2024, a decrease of $33.3 million, or 0.2%, from $14.4 billion as of December 31, 2023. Total deposits were $20.7 billion as of March 31, 2024, a decrease of $663.2 million, or 3.1%, from $21.3 billion as of December 31, 2023. Net Interest IncomeNet interest income for the first quarter of 2024 was $154.4 million, an increase of $2.6 million, or 1.7%, compared to $151.8 million for the prior quarter. The net interest margin was 2.91% in the first quarter of 2024, an increase of 10 basis points compared to 2.81% in the prior quarter. Provision ExpenseDuring the quarter ended March 31, 2024, we recorded a $6.3 million provision for credit losses. In the quarter ended December 31, 2023, we recorded a $5.3 million provision for credit losses. Noninterest IncomeNoninterest income was $51.4 million in the first quarter of 2024, a decrease of $7.0 million compared to noninterest income of $58.3 million in the prior quarter. Noninterest ExpenseNoninterest expense was $128.8 million in the first quarter of 2024, a decrease of $13.5 million compared to noninterest expense of $142.3 million in the prior quarter. The efficiency ratio was 62.2% and 67.3% for the quarters ended March 31, 2024 and December 31, 2023, respectively. TaxesThe effective tax rate was 23.3% and 24.0% for the quarters ended March 31, 2024 and December 31, 2023, respectively. Asset QualityThe allowance for credit losses was $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024, compared to $156.5 million, or 1.09% of total loans and leases, as of December 31, 2023. The reserve for unfunded commitments was $34.8 million as of March 31, 2024 compared to $35.6 million as of December 31, 2023. Net charge-offs were $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2024, compared to net charge-offs of $5.8 million, or 0.16% of average loans and leases on an annualized basis, for the quarter ended December 31, 2023. Total non-performing assets were $18.0 million, or 0.13% of total loans and leases and other real estate owned, on March 31, 2024, compared to total non-performing assets of $18.6 million, or 0.13% of total loans and leases and other real estate owned, on December 31, 2023. CapitalTotal stockholders' equity increased $27.7 million in the first quarter, and stood at $2.5 billion on March 31, 2024 and December 31, 2023. The tier 1 leverage, common equity tier 1 and total capital ratios were 8.80%, 12.55% and 13.75%, respectively, on March 31, 2024, compared with 8.64%, 12.39% and 13.57%, respectively, on December 31, 2023. The Company did not repurchase any shares in the first quarter. First Hawaiian, Inc.First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com. Conference Call Information First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call by phone, please register via the following link: https://register.vevent.com/register/BIb74728f7f2a14341b3028eb985e2ddf0, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023. Use of Non-GAAP Financial MeasuresReturn on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 12 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. Investor Relations Contact: Kevin Haseyama, CFA(808) 525-6268khaseyama@fhb.comMedia Contact:Lindsay Chambers(808) 525-6254lchambers@fhb.com Financial Highlights Table 1 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share data) 2024 2023 2023 Operating Results: Net interest income $ 154,427 $151,793 $167,247 Provision for credit losses 6,300 5,330 8,800 Noninterest income 51,371 58,347 49,023 Noninterest expense 128,813 142,307 118,567 Net income 54,220 47,502 66,818 Basic earnings per share 0.42 0.37 0.52 Diluted earnings per share 0.42 0.37 0.52 Dividends declared per share 0.26 0.26 0.26 Dividend payout ratio 61.90% 70.27% 50.00%Performance Ratios(1): Net interest margin 2.91% 2.81% 3.11%Efficiency ratio 62.15% 67.28% 54.46%Return on average total assets 0.90% 0.77% 1.10%Return on average tangible assets (non-GAAP)(2) 0.94% 0.81% 1.15%Return on average total stockholders' equity 8.73% 7.94% 11.78%Return on average tangible stockholders' equity (non-GAAP)(2) 14.53% 13.66% 20.78%Average Balances: Average loans and leases $ 14,312,563 $14,349,322 $14,079,337 Average earning assets 21,481,890 21,688,816 21,873,259 Average assets 24,187,207 24,404,727 24,548,124 Average deposits 20,571,930 20,908,221 21,468,624 Average stockholders' equity 2,496,840 2,374,669 2,299,422 Market Value Per Share: Closing 21.96 22.86 20.63 High 23.12 23.22 28.28 Low 20.37 17.18 19.68 As of As of As of March 31, December 31, March 31, (dollars in thousands, except per share data) 2024 2023 2023 Balance Sheet Data: Loans and leases $ 14,320,208 $14,353,497 $14,221,272 Total assets 24,279,186 24,926,474 24,884,207 Total deposits 20,669,481 21,332,657 21,281,500 Short-term borrowings 500,000 500,000 250,000 Long-term borrowings — — 500,000 Total stockholders' equity 2,513,761 2,486,066 2,329,012 Per Share of Common Stock: Book value $ 19.66 $19.48 $18.26 Tangible book value (non-GAAP)(2) 11.88 11.68 10.45 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.13% 0.13% 0.10%Allowance for credit losses for loans and leases / total loans and leases 1.12% 1.09% 1.03% Capital Ratios: Common Equity Tier 1 Capital Ratio 12.55% 12.39% 11.97%Tier 1 Capital Ratio 12.55% 12.39% 11.97%Total Capital Ratio 13.75% 13.57% 13.09%Tier 1 Leverage Ratio 8.80% 8.64% 8.26%Total stockholders' equity to total assets 10.35% 9.97% 9.36%Tangible stockholders' equity to tangible assets (non-GAAP)(2) 6.52% 6.23% 5.58% Non-Financial Data: Number of branches 50 50 51 Number of ATMs 275 275 296 Number of Full-Time Equivalent Employees 2,065 2,089 2,100 _____________________________ (1) Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 12, GAAP to Non-GAAP Reconciliation. Consolidated Statements of Income Table 2 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2024 2023 2023Interest income Loans and lease financing $ 199,844 $196,276 $172,339Available-for-sale investment securities 14,546 19,033 18,688Held-to-maturity investment securities 17,793 17,987 18,957Other 12,769 7,734 3,561Total interest income 244,952 241,030 213,545Interest expense Deposits 84,143 82,215 43,284Short-term and long-term borrowings 5,953 6,232 2,563Other 429 790 451Total interest expense 90,525 89,237 46,298Net interest income 154,427 151,793 167,247Provision for credit losses 6,300 5,330 8,800Net interest income after provision for credit losses 148,127 146,463 158,447Noninterest income Service charges on deposit accounts 7,546 7,646 7,231Credit and debit card fees 16,173 16,381 16,298Other service charges and fees 9,904 9,535 9,162Trust and investment services income 10,354 9,645 9,614Bank-owned life insurance 4,286 5,063 5,120Investment securities gains, net — 792 —Other 3,108 9,285 1,598Total noninterest income 51,371 58,347 49,023Noninterest expense Salaries and employee benefits 59,262 55,882 56,032Contracted services and professional fees 15,739 16,219 16,313Occupancy 6,941 7,561 7,782Equipment 13,413 12,547 9,736Regulatory assessment and fees 8,120 20,412 3,836Advertising and marketing 2,612 1,441 1,994Card rewards program 8,508 7,503 8,085Other 14,218 20,742 14,789Total noninterest expense 128,813 142,307 118,567Income before provision for income taxes 70,685 62,503 88,903Provision for income taxes 16,465 15,001 22,085Net income $ 54,220 $47,502 $66,818Basic earnings per share $ 0.42 $0.37 $0.52Diluted earnings per share $ 0.42 $0.37 $0.52Basic weighted-average outstanding shares 127,707,354 127,612,734 127,453,820Diluted weighted-average outstanding shares 128,217,689 128,028,964 128,033,812 Consolidated Balance Sheets Table 3 March 31, December 31, March 31, (dollars in thousands, except share amount) 2024 2023 2023Assets Cash and due from banks $ 202,121 $185,015 $253,705 Interest-bearing deposits in other banks 1,072,145 1,554,882 611,887 Investment securities: Available-for-sale, at fair value (amortized cost: $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,427,708 as of March 31, 2023) 2,159,338 2,255,336 3,054,280 Held-to-maturity, at amortized cost (fair value: $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,824,478 as of March 31, 2023) 3,988,011 4,041,449 4,261,361 Loans held for sale — 190 — Loans and leases 14,320,208 14,353,497 14,221,272 Less: allowance for credit losses 159,836 156,533 147,122 Net loans and leases 14,160,372 14,196,964 14,074,150 Premises and equipment, net 281,181 281,461 278,121 Other real estate owned and repossessed personal property — — 91 Accrued interest receivable 85,715 84,417 79,200 Bank-owned life insurance 484,193 479,907 473,255 Goodwill 995,492 995,492 995,492 Mortgage servicing rights 5,533 5,699 6,299 Other assets 845,085 845,662 796,366 Total assets $ 24,279,186 $24,926,474 $24,884,207 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 13,620,928 $13,749,095 $12,579,155 Noninterest-bearing 7,048,553 7,583,562 8,702,345 Total deposits 20,669,481 21,332,657 21,281,500 Short-term borrowings 500,000 500,000 250,000 Long-term borrowings — — 500,000 Retirement benefits payable 102,242 103,285 101,622 Other liabilities 493,702 504,466 422,073 Total liabilities 21,765,425 22,440,408 22,555,195 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023) 1,417 1,413 1,413 Additional paid-in capital 2,551,488 2,548,250 2,540,653 Retained earnings 858,494 837,859 769,791 Accumulated other comprehensive loss, net (523,780) (530,210) (611,679)Treasury stock (13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,717,406 shares as of March 31, 2023) (373,858) (371,246) (371,166)Total stockholders' equity 2,513,761 2,486,066 2,329,012 Total liabilities and stockholders' equity $ 24,279,186 $24,926,474 $24,884,207 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 858.6 $ 11.6 5.45%$568.0 $7.8 5.39%$299.6 $3.4 4.60%Available-for-Sale Investment Securities Taxable 2,210.6 14.5 2.63 2,598.4 19.0 2.92 3,081.4 18.4 2.39 Non-Taxable 1.8 — 5.61 1.9 — 5.12 31.1 0.4 5.55 Held-to-Maturity Investment Securities Taxable 3,416.4 14.6 1.71 3,472.1 14.8 1.70 3,683.8 15.7 1.70 Non-Taxable 603.4 4.0 2.65 603.9 3.9 2.58 612.2 4.1 2.74 Total Investment Securities 6,232.2 33.1 2.13 6,676.3 37.7 2.25 7,408.5 38.6 2.09 Loans Held for Sale 0.7 — 6.92 0.7 — 7.41 0.1 — 5.53 Loans and Leases(1) Commercial and industrial 2,164.9 37.2 6.92 2,148.1 36.7 6.78 2,192.9 32.4 5.98 Commercial real estate 4,323.5 70.1 6.53 4,356.3 71.4 6.51 4,105.7 58.3 5.76 Construction 924.7 17.4 7.55 888.7 16.7 7.45 873.9 14.7 6.83 Residential: Residential mortgage 4,264.1 42.0 3.94 4,294.8 38.8 3.61 4,307.0 38.4 3.57 Home equity line 1,172.1 12.0 4.13 1,174.8 11.3 3.83 1,074.9 8.7 3.27 Consumer 1,083.5 18.1 6.71 1,132.4 18.4 6.43 1,213.5 17.2 5.75 Lease financing 379.8 3.7 3.91 354.2 3.6 4.03 311.4 3.1 4.10 Total Loans and Leases 14,312.6 200.5 5.63 14,349.3 196.9 5.45 14,079.3 172.8 4.96 Other Earning Assets 77.8 1.2 5.90 94.5 — 0.06 85.8 0.2 0.76 Total Earning Assets(2) 21,481.9 246.4 4.61 21,688.8 242.4 4.44 21,873.3 215.0 3.97 Cash and Due from Banks 244.3 240.8 286.1 Other Assets 2,461.0 2,475.1 2,388.7 Total Assets $ 24,187.2 $24,404.7 $24,548.1 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,059.7 $ 23.4 1.56%$6,067.2 $22.4 1.46% 6,354.3 $13.9 0.89%Money Market 3,944.9 28.8 2.94 3,905.0 27.5 2.79 3,853.5 14.3 1.50 Time 3,325.3 31.9 3.86 3,390.7 32.3 3.78 2,515.6 15.1 2.44 Total Interest-Bearing Deposits 13,329.9 84.1 2.54 13,362.9 82.2 2.44 12,723.4 43.3 1.38 Federal Funds Purchased — — — — — — 67.1 0.7 4.43 Other Short-Term Borrowings 500.0 6.0 4.79 515.2 6.2 4.80 52.8 0.7 5.02 Long-Term Borrowings — — — — — — 105.5 1.2 4.52 Other Interest-Bearing Liabilities 33.0 0.4 5.22 42.1 0.8 7.44 42.8 0.4 4.27 Total Interest-Bearing Liabilities 13,862.9 90.5 2.63 13,920.2 89.2 2.54 12,991.6 46.3 1.45 Net Interest Income $ 155.9 $153.2 $168.7 Interest Rate Spread(3) 1.98% 1.90% 2.52%Net Interest Margin(4) 2.91% 2.81% 3.11%Noninterest-Bearing Demand Deposits 7,242.0 7,545.3 8,745.2 Other Liabilities 585.5 564.5 511.9 Stockholders' Equity 2,496.8 2,374.7 2,299.4 Total Liabilities and Stockholders' Equity $ 24,187.2 $24,404.7 $24,548.1 _____________________________ (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $1.5 million, $1.4 million and $1.4 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets. Analysis of Change in Net Interest Income Table 5 Three Months Ended March 31, 2024 Compared to December 31, 2023(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 3.8 $ — $ 3.8 Available-for-Sale Investment Securities Taxable (2.7) (1.8) (4.5)Held-to-Maturity Investment Securities Taxable (0.3) 0.1 (0.2)Non-Taxable — 0.1 0.1 Total Investment Securities (3.0) (1.6) (4.6)Loans and Leases Commercial and industrial 0.1 0.4 0.5 Commercial real estate (1.2) (0.1) (1.3)Construction 0.5 0.2 0.7 Residential: Residential mortgage (0.3) 3.5 3.2 Home equity line — 0.7 0.7 Consumer (0.9) 0.6 (0.3)Lease financing 0.2 (0.1) 0.1 Total Loans and Leases (1.6) 5.2 3.6 Other Earning Assets — 1.2 1.2 Total Change in Interest Income (0.8) 4.8 4.0 Change in Interest Expense: Interest-Bearing Deposits Savings (0.1) 1.1 1.0 Money Market 0.2 1.1 1.3 Time (0.8) 0.4 (0.4)Total Interest-Bearing Deposits (0.7) 2.6 1.9 Other Short-Term Borrowings (0.2) — (0.2)Other Interest-Bearing Liabilities (0.2) (0.2) (0.4)Total Change in Interest Expense (1.1) 2.4 1.3 Change in Net Interest Income $ 0.3 $ 2.4 $ 2.7 Analysis of Change in Net Interest Income Table 6 Three Months Ended March 31, 2024 Compared to March 31, 2023(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 7.5 $ 0.7 $ 8.2 Available-for-Sale Investment Securities Taxable (5.6) 1.7 (3.9)Non-Taxable (0.4) — (0.4)Held-to-Maturity Investment Securities Taxable (1.2) 0.1 (1.1)Non-Taxable — (0.1) (0.1)Total Investment Securities (7.2) 1.7 (5.5)Loans and Leases Commercial and industrial (0.4) 5.2 4.8 Commercial real estate 3.3 8.5 11.8 Construction 1.0 1.7 2.7 Residential: Residential mortgage (0.4) 4.0 3.6 Home equity line 0.8 2.5 3.3 Consumer (1.9) 2.8 0.9 Lease financing 0.7 (0.1) 0.6 Total Loans and Leases 3.1 24.6 27.7 Other Earning Assets — 1.0 1.0 Total Change in Interest Income 3.4 28.0 31.4 Change in Interest Expense: Interest-Bearing Deposits Savings (0.7) 10.2 9.5 Money Market 0.3 14.2 14.5 Time 6.0 10.8 16.8 Total Interest-Bearing Deposits 5.6 35.2 40.8 Federal Funds Purchased (0.3) (0.4) (0.7)Other Short-Term Borrowings 5.3 — 5.3 Long-Term Borrowings (0.6) (0.6) (1.2)Other Interest-Bearing Liabilities (0.1) 0.1 — Total Change in Interest Expense 9.9 34.3 44.2 Change in Net Interest Income $ (6.5) $ (6.3) $ (12.8) Loans and Leases Table 7 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Commercial and industrial $ 2,189,875 $2,165,349 $2,268,332Commercial real estate 4,301,300 4,340,243 4,106,200Construction 972,517 900,292 913,959Residential: Residential mortgage 4,242,502 4,283,315 4,318,742Home equity line 1,165,778 1,174,588 1,095,365Total residential 5,408,280 5,457,903 5,414,107Consumer 1,054,227 1,109,901 1,191,552Lease financing 394,009 379,809 327,122Total loans and leases $ 14,320,208 $14,353,497 $14,221,272 Deposits Table 8 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Demand $ 7,048,553 $7,583,562 $8,702,345Savings 6,277,679 6,445,084 6,173,398Money Market 4,059,204 3,847,853 3,818,355Time 3,284,045 3,456,158 2,587,402 Total Deposits $ 20,669,481 $21,332,657 $21,281,500 Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 9 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 942 $970 $1,158Commercial real estate 2,953 2,953 727Total Commercial Loans 3,895 3,923 1,885Residential Loans: Residential mortgage 7,777 7,620 6,896Home equity line 6,345 7,052 4,903Total Residential Loans 14,122 14,672 11,799Total Non-Accrual Loans and Leases 18,017 18,595 13,684Other Real Estate Owned — — 91Total Non-Performing Assets $ 18,017 $18,595 $13,775 Accruing Loans and Leases Past Due 90 Days or More Commercial Loans: Commercial and industrial $ 529 $494 $461Commercial real estate — 300 1,346Construction 606 — 102Total Commercial Loans 1,135 794 1,909Residential mortgage 359 — 58Consumer 2,126 2,702 2,502Total Accruing Loans and Leases Past Due 90 Days or More $ 3,620 $3,496 $4,469 Total Loans and Leases $ 14,320,208 $14,353,497 $14,221,272 Allowance for Credit Losses and Reserve for Unfunded Commitments Table 10 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Balance at Beginning of Period $ 192,138 $192,570 $177,735 Loans and Leases Charged-Off Commercial Loans: Commercial and industrial (909) (910) (791) Commercial real estate — (2,500) — Total Commercial Loans (909) (3,410) (791) Residential Loans: Residential mortgage — — (122) Home equity line — (20) (135) Total Residential Loans — (20) (257) Consumer (4,854) (4,147) (4,782) Total Loans and Leases Charged-Off (5,763) (7,577) (5,830) Recoveries on Loans and Leases Previously Charged-Off Commercial and industrial 211 171 246 Residential Loans: Residential mortgage 30 31 27 Home equity line 44 163 177 Total Residential Loans 74 194 204 Consumer 1,689 1,450 2,166 Total Recoveries on Loans and Leases Previously Charged-Off 1,974 1,815 2,616 Net Loans and Leases Charged-Off (3,789) (5,762) (3,214) Provision for Credit Losses 6,300 5,330 8,800 Balance at End of Period $ 194,649 $192,138 $183,321 Components: Allowance for Credit Losses $ 159,836 $156,533 $147,122 Reserve for Unfunded Commitments 34,813 35,605 36,199 Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 194,649 $192,138 $183,321 Average Loans and Leases Outstanding $ 14,312,563 $14,349,322 $14,079,337 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) 0.11 % 0.16 % 0.09 %Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.12 % 1.09 % 1.03 %Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases 8.87x 8.42x 10.75x _____________________________ (1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. Loans and Leases by Year of Origination and Credit Quality Indicator Table 11 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis TotalCommercial Lending Commercial and Industrial Risk rating: Pass $ 13,488 $ 104,265 $ 263,282 $ 318,417 $ 29,787 $ 282,287 $ 987,132 $ 26,745 $ 2,025,403Special Mention 202 1 23,276 73 539 1,385 8,132 — 33,608Substandard — — 20,364 214 572 2,191 25,638 — 48,979Other (1) 4,887 12,883 10,053 4,044 1,970 2,396 45,652 — 81,885Total Commercial and Industrial 18,577 117,149 316,975 322,748 32,868 288,259 1,066,554 26,745 2,189,875Current period gross charge-offs — 71 114 61 52 611 — — 909 Commercial Real Estate Risk rating: Pass 28,321 344,674 864,166 671,379 334,606 1,866,875 93,485 4,223 4,207,729Special Mention 3,339 2,290 7,591 41,337 1,358 18,507 6,863 — 81,285Substandard — — 5,047 1,203 — 5,244 652 — 12,146Other (1) — — — — — 140 — — 140Total Commercial Real Estate 31,660 346,964 876,804 713,919 335,964 1,890,766 101,000 4,223 4,301,300Current period gross charge-offs — — — — — — — — — Construction Risk rating: Pass 14,198 181,628 311,175 258,400 59,563 65,776 11,872 — 902,612Special Mention — — — — — 837 — — 837Substandard — — — — — 24,437 — — 24,437Other (1) 859 12,258 17,492 6,373 1,357 5,588 704 — 44,631Total Construction 15,057 193,886 328,667 264,773 60,920 96,638 12,576 — 972,517Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 50,531 114,686 78,028 17,488 28,946 97,319 — — 386,998Special Mention — 51 125 377 20 — — — 573Substandard 5,370 676 392 — — — — — 6,438Total Lease Financing 55,901 115,413 78,545 17,865 28,966 97,319 — — 394,009Current period gross charge-offs — — — — — — — — — Total Commercial Lending $ 121,195 $ 773,412 $ 1,600,991 $ 1,319,305 $ 458,718 $ 2,372,982 $ 1,180,130 $ 30,968 $ 7,857,701Current period gross charge-offs $ — $ 71 $ 114 $ 61 $ 52 $ 611 $ — $ — $ 909 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis TotalResidential Lending Residential Mortgage FICO: 740 and greater $ 28,332 $ 207,263 $ 524,402 $ 987,343 $ 521,598 $ 1,186,496 $ — $ — $ 3,455,434680 - 739 1,525 36,569 67,192 115,481 67,662 158,890 — — 447,319620 - 679 910 2,910 16,268 19,056 12,733 41,573 — — 93,450550 - 619 — 1,303 6,506 1,903 2,477 11,685 — — 23,874Less than 550 — — — 2,894 2,006 6,686 — — 11,586No Score (3) — 9,081 20,505 11,400 6,006 58,777 — — 105,769Other (2) 1,419 13,320 16,937 15,740 12,088 32,590 12,976 — 105,070Total Residential Mortgage 32,186 270,446 651,810 1,153,817 624,570 1,496,697 12,976 — 4,242,502Current period gross charge-offs — — — — — — — — — Home Equity Line FICO: 740 and greater — — — — — — 943,792 1,428 945,220680 - 739 — — — — — — 162,578 1,886 164,464620 - 679 — — — — — — 33,728 927 34,655550 - 619 — — — — — — 13,382 971 14,353Less than 550 — — — — — — 5,392 296 5,688No Score (3) — — — — — — 1,398 — 1,398Total Home Equity Line — — — — — — 1,160,270 5,508 1,165,778Current period gross charge-offs — — — — — — — — — Total Residential Lending $ 32,186 $ 270,446 $ 651,810 $ 1,153,817 $ 624,570 $ 1,496,697 $ 1,173,246 $ 5,508 $ 5,408,280Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Lending FICO: 740 and greater 18,671 82,551 113,914 66,175 28,100 22,442 116,198 138 448,189680 - 739 13,464 64,229 64,623 33,167 14,755 13,951 75,151 439 279,779620 - 679 4,293 28,729 27,210 15,641 6,793 10,003 35,179 791 128,639550 - 619 620 6,973 11,551 7,621 4,025 6,289 13,452 795 51,326Less than 550 110 2,634 6,734 5,075 2,837 4,179 5,782 646 27,997No Score (3) 733 839 209 — 9 16 39,466 256 41,528Other (2) — 304 349 960 330 1,032 73,794 — 76,769Total Consumer Lending $ 37,891 $ 186,259 $ 224,590 $ 128,639 $ 56,849 $ 57,912 $ 359,022 $ 3,065 $ 1,054,227Current period gross charge-offs $ — $ 437 $ 904 $ 496 $ 272 $ 769 $ 1,789 $ 187 $ 4,854 Total Loans and Leases $ 191,272 $ 1,230,117 $ 2,477,391 $ 2,601,761 $ 1,140,137 $ 3,927,591 $ 2,712,398 $ 39,541 $ 14,320,208Current period gross charge-offs $ — $ 508 $ 1,018 $ 557 $ 324 $ 1,380 $ 1,789 $ 187 $ 5,763 _____________________________ (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance. GAAP to Non-GAAP Reconciliation Table 12 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Income Statement Data: Net income $ 54,220 $47,502 $66,818 Average total stockholders' equity $ 2,496,840 $2,374,669 $2,299,422 Less: average goodwill 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,501,348 $1,379,177 $1,303,930 Average total assets $ 24,187,207 $24,404,727 $24,548,124 Less: average goodwill 995,492 995,492 995,492 Average tangible assets $ 23,191,715 $23,409,235 $23,552,632 Return on average total stockholders' equity(1) 8.73% 7.94% 11.78%Return on average tangible stockholders' equity (non-GAAP)(1) 14.53% 13.66% 20.78% Return on average total assets(1) 0.90% 0.77% 1.10%Return on average tangible assets (non-GAAP)(1) 0.94% 0.81% 1.15% As of As of As of March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2024 2023 2023 Balance Sheet Data: Total stockholders' equity $ 2,513,761 $2,486,066 $2,329,012 Less: goodwill 995,492 995,492 995,492 Tangible stockholders' equity $ 1,518,269 $1,490,574 $1,333,520 Total assets $ 24,279,186 $24,926,474 $24,884,207 Less: goodwill 995,492 995,492 995,492 Tangible assets $ 23,283,694 $23,930,982 $23,888,715 Shares outstanding 127,841,908 127,618,761 127,573,680 Total stockholders' equity to total assets 10.35% 9.97% 9.36%Tangible stockholders' equity to tangible assets (non-GAAP) 6.52% 6.23% 5.58% Book value per share $ 19.66 $19.48 $18.26 Tangible book value per share (non-GAAP) $ 11.88 $11.68 $10.45 _____________________________ (1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.
HONOLULU, April 26, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2024. “I’m pleased to report that we started 2024 with a solid first quarter,” said Bob Harrison, Chairman, President, and CEO. “We had strong earnings, continued excellent credit quality and continued to grow our capital levels.” On April 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 31, 2024, to stockholders of record at the close of business on May 20, 2024. First Quarter 2024 Highlights: Net income of $54.2 million, or $0.42 per diluted shareTotal loans and leases decreased $33.3 million versus prior quarterTotal deposits decreased $663.2 million versus prior quarterNet interest margin increased 10 basis points to 2.91%Recorded a $6.3 million provision for credit losses$4.1 million FDIC special assessment included in expensesBoard of Directors declared a quarterly dividend of $0.26 per share Balance SheetTotal assets were $24.3 billion as of March 31, 2024, a decrease of $647.3 million, or 2.6%, from $24.9 billion as of December 31, 2023. Gross loans and leases were $14.3 billion as of March 31, 2024, a decrease of $33.3 million, or 0.2%, from $14.4 billion as of December 31, 2023. Total deposits were $20.7 billion as of March 31, 2024, a decrease of $663.2 million, or 3.1%, from $21.3 billion as of December 31, 2023. Net Interest IncomeNet interest income for the first quarter of 2024 was $154.4 million, an increase of $2.6 million, or 1.7%, compared to $151.8 million for the prior quarter. The net interest margin was 2.91% in the first quarter of 2024, an increase of 10 basis points compared to 2.81% in the prior quarter. Provision ExpenseDuring the quarter ended March 31, 2024, we recorded a $6.3 million provision for credit losses. In the quarter ended December 31, 2023, we recorded a $5.3 million provision for credit losses. Noninterest IncomeNoninterest income was $51.4 million in the first quarter of 2024, a decrease of $7.0 million compared to noninterest income of $58.3 million in the prior quarter. Noninterest ExpenseNoninterest expense was $128.8 million in the first quarter of 2024, a decrease of $13.5 million compared to noninterest expense of $142.3 million in the prior quarter. The efficiency ratio was 62.2% and 67.3% for the quarters ended March 31, 2024 and December 31, 2023, respectively. TaxesThe effective tax rate was 23.3% and 24.0% for the quarters ended March 31, 2024 and December 31, 2023, respectively. Asset QualityThe allowance for credit losses was $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024, compared to $156.5 million, or 1.09% of total loans and leases, as of December 31, 2023. The reserve for unfunded commitments was $34.8 million as of March 31, 2024 compared to $35.6 million as of December 31, 2023. Net charge-offs were $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2024, compared to net charge-offs of $5.8 million, or 0.16% of average loans and leases on an annualized basis, for the quarter ended December 31, 2023. Total non-performing assets were $18.0 million, or 0.13% of total loans and leases and other real estate owned, on March 31, 2024, compared to total non-performing assets of $18.6 million, or 0.13% of total loans and leases and other real estate owned, on December 31, 2023. CapitalTotal stockholders' equity increased $27.7 million in the first quarter, and stood at $2.5 billion on March 31, 2024 and December 31, 2023. The tier 1 leverage, common equity tier 1 and total capital ratios were 8.80%, 12.55% and 13.75%, respectively, on March 31, 2024, compared with 8.64%, 12.39% and 13.57%, respectively, on December 31, 2023. The Company did not repurchase any shares in the first quarter. First Hawaiian, Inc.First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com. Conference Call Information First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call by phone, please register via the following link: https://register.vevent.com/register/BIb74728f7f2a14341b3028eb985e2ddf0, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023. Use of Non-GAAP Financial MeasuresReturn on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 12 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. Investor Relations Contact: Kevin Haseyama, CFA(808) 525-6268khaseyama@fhb.comMedia Contact:Lindsay Chambers(808) 525-6254lchambers@fhb.com Financial Highlights Table 1 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share data) 2024 2023 2023 Operating Results: Net interest income $ 154,427 $151,793 $167,247 Provision for credit losses 6,300 5,330 8,800 Noninterest income 51,371 58,347 49,023 Noninterest expense 128,813 142,307 118,567 Net income 54,220 47,502 66,818 Basic earnings per share 0.42 0.37 0.52 Diluted earnings per share 0.42 0.37 0.52 Dividends declared per share 0.26 0.26 0.26 Dividend payout ratio 61.90% 70.27% 50.00%Performance Ratios(1): Net interest margin 2.91% 2.81% 3.11%Efficiency ratio 62.15% 67.28% 54.46%Return on average total assets 0.90% 0.77% 1.10%Return on average tangible assets (non-GAAP)(2) 0.94% 0.81% 1.15%Return on average total stockholders' equity 8.73% 7.94% 11.78%Return on average tangible stockholders' equity (non-GAAP)(2) 14.53% 13.66% 20.78%Average Balances: Average loans and leases $ 14,312,563 $14,349,322 $14,079,337 Average earning assets 21,481,890 21,688,816 21,873,259 Average assets 24,187,207 24,404,727 24,548,124 Average deposits 20,571,930 20,908,221 21,468,624 Average stockholders' equity 2,496,840 2,374,669 2,299,422 Market Value Per Share: Closing 21.96 22.86 20.63 High 23.12 23.22 28.28 Low 20.37 17.18 19.68 As of As of As of March 31, December 31, March 31, (dollars in thousands, except per share data) 2024 2023 2023 Balance Sheet Data: Loans and leases $ 14,320,208 $14,353,497 $14,221,272 Total assets 24,279,186 24,926,474 24,884,207 Total deposits 20,669,481 21,332,657 21,281,500 Short-term borrowings 500,000 500,000 250,000 Long-term borrowings — — 500,000 Total stockholders' equity 2,513,761 2,486,066 2,329,012 Per Share of Common Stock: Book value $ 19.66 $19.48 $18.26 Tangible book value (non-GAAP)(2) 11.88 11.68 10.45 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.13% 0.13% 0.10%Allowance for credit losses for loans and leases / total loans and leases 1.12% 1.09% 1.03% Capital Ratios: Common Equity Tier 1 Capital Ratio 12.55% 12.39% 11.97%Tier 1 Capital Ratio 12.55% 12.39% 11.97%Total Capital Ratio 13.75% 13.57% 13.09%Tier 1 Leverage Ratio 8.80% 8.64% 8.26%Total stockholders' equity to total assets 10.35% 9.97% 9.36%Tangible stockholders' equity to tangible assets (non-GAAP)(2) 6.52% 6.23% 5.58% Non-Financial Data: Number of branches 50 50 51 Number of ATMs 275 275 296 Number of Full-Time Equivalent Employees 2,065 2,089 2,100 _____________________________ (1) Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 12, GAAP to Non-GAAP Reconciliation. Consolidated Statements of Income Table 2 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2024 2023 2023Interest income Loans and lease financing $ 199,844 $196,276 $172,339Available-for-sale investment securities 14,546 19,033 18,688Held-to-maturity investment securities 17,793 17,987 18,957Other 12,769 7,734 3,561Total interest income 244,952 241,030 213,545Interest expense Deposits 84,143 82,215 43,284Short-term and long-term borrowings 5,953 6,232 2,563Other 429 790 451Total interest expense 90,525 89,237 46,298Net interest income 154,427 151,793 167,247Provision for credit losses 6,300 5,330 8,800Net interest income after provision for credit losses 148,127 146,463 158,447Noninterest income Service charges on deposit accounts 7,546 7,646 7,231Credit and debit card fees 16,173 16,381 16,298Other service charges and fees 9,904 9,535 9,162Trust and investment services income 10,354 9,645 9,614Bank-owned life insurance 4,286 5,063 5,120Investment securities gains, net — 792 —Other 3,108 9,285 1,598Total noninterest income 51,371 58,347 49,023Noninterest expense Salaries and employee benefits 59,262 55,882 56,032Contracted services and professional fees 15,739 16,219 16,313Occupancy 6,941 7,561 7,782Equipment 13,413 12,547 9,736Regulatory assessment and fees 8,120 20,412 3,836Advertising and marketing 2,612 1,441 1,994Card rewards program 8,508 7,503 8,085Other 14,218 20,742 14,789Total noninterest expense 128,813 142,307 118,567Income before provision for income taxes 70,685 62,503 88,903Provision for income taxes 16,465 15,001 22,085Net income $ 54,220 $47,502 $66,818Basic earnings per share $ 0.42 $0.37 $0.52Diluted earnings per share $ 0.42 $0.37 $0.52Basic weighted-average outstanding shares 127,707,354 127,612,734 127,453,820Diluted weighted-average outstanding shares 128,217,689 128,028,964 128,033,812 Consolidated Balance Sheets Table 3 March 31, December 31, March 31, (dollars in thousands, except share amount) 2024 2023 2023Assets Cash and due from banks $ 202,121 $185,015 $253,705 Interest-bearing deposits in other banks 1,072,145 1,554,882 611,887 Investment securities: Available-for-sale, at fair value (amortized cost: $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,427,708 as of March 31, 2023) 2,159,338 2,255,336 3,054,280 Held-to-maturity, at amortized cost (fair value: $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,824,478 as of March 31, 2023) 3,988,011 4,041,449 4,261,361 Loans held for sale — 190 — Loans and leases 14,320,208 14,353,497 14,221,272 Less: allowance for credit losses 159,836 156,533 147,122 Net loans and leases 14,160,372 14,196,964 14,074,150 Premises and equipment, net 281,181 281,461 278,121 Other real estate owned and repossessed personal property — — 91 Accrued interest receivable 85,715 84,417 79,200 Bank-owned life insurance 484,193 479,907 473,255 Goodwill 995,492 995,492 995,492 Mortgage servicing rights 5,533 5,699 6,299 Other assets 845,085 845,662 796,366 Total assets $ 24,279,186 $24,926,474 $24,884,207 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 13,620,928 $13,749,095 $12,579,155 Noninterest-bearing 7,048,553 7,583,562 8,702,345 Total deposits 20,669,481 21,332,657 21,281,500 Short-term borrowings 500,000 500,000 250,000 Long-term borrowings — — 500,000 Retirement benefits payable 102,242 103,285 101,622 Other liabilities 493,702 504,466 422,073 Total liabilities 21,765,425 22,440,408 22,555,195 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023) 1,417 1,413 1,413 Additional paid-in capital 2,551,488 2,548,250 2,540,653 Retained earnings 858,494 837,859 769,791 Accumulated other comprehensive loss, net (523,780) (530,210) (611,679)Treasury stock (13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,717,406 shares as of March 31, 2023) (373,858) (371,246) (371,166)Total stockholders' equity 2,513,761 2,486,066 2,329,012 Total liabilities and stockholders' equity $ 24,279,186 $24,926,474 $24,884,207 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 858.6 $ 11.6 5.45%$568.0 $7.8 5.39%$299.6 $3.4 4.60%Available-for-Sale Investment Securities Taxable 2,210.6 14.5 2.63 2,598.4 19.0 2.92 3,081.4 18.4 2.39 Non-Taxable 1.8 — 5.61 1.9 — 5.12 31.1 0.4 5.55 Held-to-Maturity Investment Securities Taxable 3,416.4 14.6 1.71 3,472.1 14.8 1.70 3,683.8 15.7 1.70 Non-Taxable 603.4 4.0 2.65 603.9 3.9 2.58 612.2 4.1 2.74 Total Investment Securities 6,232.2 33.1 2.13 6,676.3 37.7 2.25 7,408.5 38.6 2.09 Loans Held for Sale 0.7 — 6.92 0.7 — 7.41 0.1 — 5.53 Loans and Leases(1) Commercial and industrial 2,164.9 37.2 6.92 2,148.1 36.7 6.78 2,192.9 32.4 5.98 Commercial real estate 4,323.5 70.1 6.53 4,356.3 71.4 6.51 4,105.7 58.3 5.76 Construction 924.7 17.4 7.55 888.7 16.7 7.45 873.9 14.7 6.83 Residential: Residential mortgage 4,264.1 42.0 3.94 4,294.8 38.8 3.61 4,307.0 38.4 3.57 Home equity line 1,172.1 12.0 4.13 1,174.8 11.3 3.83 1,074.9 8.7 3.27 Consumer 1,083.5 18.1 6.71 1,132.4 18.4 6.43 1,213.5 17.2 5.75 Lease financing 379.8 3.7 3.91 354.2 3.6 4.03 311.4 3.1 4.10 Total Loans and Leases 14,312.6 200.5 5.63 14,349.3 196.9 5.45 14,079.3 172.8 4.96 Other Earning Assets 77.8 1.2 5.90 94.5 — 0.06 85.8 0.2 0.76 Total Earning Assets(2) 21,481.9 246.4 4.61 21,688.8 242.4 4.44 21,873.3 215.0 3.97 Cash and Due from Banks 244.3 240.8 286.1 Other Assets 2,461.0 2,475.1 2,388.7 Total Assets $ 24,187.2 $24,404.7 $24,548.1 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,059.7 $ 23.4 1.56%$6,067.2 $22.4 1.46% 6,354.3 $13.9 0.89%Money Market 3,944.9 28.8 2.94 3,905.0 27.5 2.79 3,853.5 14.3 1.50 Time 3,325.3 31.9 3.86 3,390.7 32.3 3.78 2,515.6 15.1 2.44 Total Interest-Bearing Deposits 13,329.9 84.1 2.54 13,362.9 82.2 2.44 12,723.4 43.3 1.38 Federal Funds Purchased — — — — — — 67.1 0.7 4.43 Other Short-Term Borrowings 500.0 6.0 4.79 515.2 6.2 4.80 52.8 0.7 5.02 Long-Term Borrowings — — — — — — 105.5 1.2 4.52 Other Interest-Bearing Liabilities 33.0 0.4 5.22 42.1 0.8 7.44 42.8 0.4 4.27 Total Interest-Bearing Liabilities 13,862.9 90.5 2.63 13,920.2 89.2 2.54 12,991.6 46.3 1.45 Net Interest Income $ 155.9 $153.2 $168.7 Interest Rate Spread(3) 1.98% 1.90% 2.52%Net Interest Margin(4) 2.91% 2.81% 3.11%Noninterest-Bearing Demand Deposits 7,242.0 7,545.3 8,745.2 Other Liabilities 585.5 564.5 511.9 Stockholders' Equity 2,496.8 2,374.7 2,299.4 Total Liabilities and Stockholders' Equity $ 24,187.2 $24,404.7 $24,548.1 _____________________________ (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $1.5 million, $1.4 million and $1.4 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets. Analysis of Change in Net Interest Income Table 5 Three Months Ended March 31, 2024 Compared to December 31, 2023(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 3.8 $ — $ 3.8 Available-for-Sale Investment Securities Taxable (2.7) (1.8) (4.5)Held-to-Maturity Investment Securities Taxable (0.3) 0.1 (0.2)Non-Taxable — 0.1 0.1 Total Investment Securities (3.0) (1.6) (4.6)Loans and Leases Commercial and industrial 0.1 0.4 0.5 Commercial real estate (1.2) (0.1) (1.3)Construction 0.5 0.2 0.7 Residential: Residential mortgage (0.3) 3.5 3.2 Home equity line — 0.7 0.7 Consumer (0.9) 0.6 (0.3)Lease financing 0.2 (0.1) 0.1 Total Loans and Leases (1.6) 5.2 3.6 Other Earning Assets — 1.2 1.2 Total Change in Interest Income (0.8) 4.8 4.0 Change in Interest Expense: Interest-Bearing Deposits Savings (0.1) 1.1 1.0 Money Market 0.2 1.1 1.3 Time (0.8) 0.4 (0.4)Total Interest-Bearing Deposits (0.7) 2.6 1.9 Other Short-Term Borrowings (0.2) — (0.2)Other Interest-Bearing Liabilities (0.2) (0.2) (0.4)Total Change in Interest Expense (1.1) 2.4 1.3 Change in Net Interest Income $ 0.3 $ 2.4 $ 2.7 Analysis of Change in Net Interest Income Table 6 Three Months Ended March 31, 2024 Compared to March 31, 2023(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 7.5 $ 0.7 $ 8.2 Available-for-Sale Investment Securities Taxable (5.6) 1.7 (3.9)Non-Taxable (0.4) — (0.4)Held-to-Maturity Investment Securities Taxable (1.2) 0.1 (1.1)Non-Taxable — (0.1) (0.1)Total Investment Securities (7.2) 1.7 (5.5)Loans and Leases Commercial and industrial (0.4) 5.2 4.8 Commercial real estate 3.3 8.5 11.8 Construction 1.0 1.7 2.7 Residential: Residential mortgage (0.4) 4.0 3.6 Home equity line 0.8 2.5 3.3 Consumer (1.9) 2.8 0.9 Lease financing 0.7 (0.1) 0.6 Total Loans and Leases 3.1 24.6 27.7 Other Earning Assets — 1.0 1.0 Total Change in Interest Income 3.4 28.0 31.4 Change in Interest Expense: Interest-Bearing Deposits Savings (0.7) 10.2 9.5 Money Market 0.3 14.2 14.5 Time 6.0 10.8 16.8 Total Interest-Bearing Deposits 5.6 35.2 40.8 Federal Funds Purchased (0.3) (0.4) (0.7)Other Short-Term Borrowings 5.3 — 5.3 Long-Term Borrowings (0.6) (0.6) (1.2)Other Interest-Bearing Liabilities (0.1) 0.1 — Total Change in Interest Expense 9.9 34.3 44.2 Change in Net Interest Income $ (6.5) $ (6.3) $ (12.8) Loans and Leases Table 7 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Commercial and industrial $ 2,189,875 $2,165,349 $2,268,332Commercial real estate 4,301,300 4,340,243 4,106,200Construction 972,517 900,292 913,959Residential: Residential mortgage 4,242,502 4,283,315 4,318,742Home equity line 1,165,778 1,174,588 1,095,365Total residential 5,408,280 5,457,903 5,414,107Consumer 1,054,227 1,109,901 1,191,552Lease financing 394,009 379,809 327,122Total loans and leases $ 14,320,208 $14,353,497 $14,221,272 Deposits Table 8 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Demand $ 7,048,553 $7,583,562 $8,702,345Savings 6,277,679 6,445,084 6,173,398Money Market 4,059,204 3,847,853 3,818,355Time 3,284,045 3,456,158 2,587,402 Total Deposits $ 20,669,481 $21,332,657 $21,281,500 Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 9 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 942 $970 $1,158Commercial real estate 2,953 2,953 727Total Commercial Loans 3,895 3,923 1,885Residential Loans: Residential mortgage 7,777 7,620 6,896Home equity line 6,345 7,052 4,903Total Residential Loans 14,122 14,672 11,799Total Non-Accrual Loans and Leases 18,017 18,595 13,684Other Real Estate Owned — — 91Total Non-Performing Assets $ 18,017 $18,595 $13,775 Accruing Loans and Leases Past Due 90 Days or More Commercial Loans: Commercial and industrial $ 529 $494 $461Commercial real estate — 300 1,346Construction 606 — 102Total Commercial Loans 1,135 794 1,909Residential mortgage 359 — 58Consumer 2,126 2,702 2,502Total Accruing Loans and Leases Past Due 90 Days or More $ 3,620 $3,496 $4,469 Total Loans and Leases $ 14,320,208 $14,353,497 $14,221,272 Allowance for Credit Losses and Reserve for Unfunded Commitments Table 10 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Balance at Beginning of Period $ 192,138 $192,570 $177,735 Loans and Leases Charged-Off Commercial Loans: Commercial and industrial (909) (910) (791) Commercial real estate — (2,500) — Total Commercial Loans (909) (3,410) (791) Residential Loans: Residential mortgage — — (122) Home equity line — (20) (135) Total Residential Loans — (20) (257) Consumer (4,854) (4,147) (4,782) Total Loans and Leases Charged-Off (5,763) (7,577) (5,830) Recoveries on Loans and Leases Previously Charged-Off Commercial and industrial 211 171 246 Residential Loans: Residential mortgage 30 31 27 Home equity line 44 163 177 Total Residential Loans 74 194 204 Consumer 1,689 1,450 2,166 Total Recoveries on Loans and Leases Previously Charged-Off 1,974 1,815 2,616 Net Loans and Leases Charged-Off (3,789) (5,762) (3,214) Provision for Credit Losses 6,300 5,330 8,800 Balance at End of Period $ 194,649 $192,138 $183,321 Components: Allowance for Credit Losses $ 159,836 $156,533 $147,122 Reserve for Unfunded Commitments 34,813 35,605 36,199 Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 194,649 $192,138 $183,321 Average Loans and Leases Outstanding $ 14,312,563 $14,349,322 $14,079,337 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) 0.11 % 0.16 % 0.09 %Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.12 % 1.09 % 1.03 %Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases 8.87x 8.42x 10.75x _____________________________ (1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023. Loans and Leases by Year of Origination and Credit Quality Indicator Table 11 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis TotalCommercial Lending Commercial and Industrial Risk rating: Pass $ 13,488 $ 104,265 $ 263,282 $ 318,417 $ 29,787 $ 282,287 $ 987,132 $ 26,745 $ 2,025,403Special Mention 202 1 23,276 73 539 1,385 8,132 — 33,608Substandard — — 20,364 214 572 2,191 25,638 — 48,979Other (1) 4,887 12,883 10,053 4,044 1,970 2,396 45,652 — 81,885Total Commercial and Industrial 18,577 117,149 316,975 322,748 32,868 288,259 1,066,554 26,745 2,189,875Current period gross charge-offs — 71 114 61 52 611 — — 909 Commercial Real Estate Risk rating: Pass 28,321 344,674 864,166 671,379 334,606 1,866,875 93,485 4,223 4,207,729Special Mention 3,339 2,290 7,591 41,337 1,358 18,507 6,863 — 81,285Substandard — — 5,047 1,203 — 5,244 652 — 12,146Other (1) — — — — — 140 — — 140Total Commercial Real Estate 31,660 346,964 876,804 713,919 335,964 1,890,766 101,000 4,223 4,301,300Current period gross charge-offs — — — — — — — — — Construction Risk rating: Pass 14,198 181,628 311,175 258,400 59,563 65,776 11,872 — 902,612Special Mention — — — — — 837 — — 837Substandard — — — — — 24,437 — — 24,437Other (1) 859 12,258 17,492 6,373 1,357 5,588 704 — 44,631Total Construction 15,057 193,886 328,667 264,773 60,920 96,638 12,576 — 972,517Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 50,531 114,686 78,028 17,488 28,946 97,319 — — 386,998Special Mention — 51 125 377 20 — — — 573Substandard 5,370 676 392 — — — — — 6,438Total Lease Financing 55,901 115,413 78,545 17,865 28,966 97,319 — — 394,009Current period gross charge-offs — — — — — — — — — Total Commercial Lending $ 121,195 $ 773,412 $ 1,600,991 $ 1,319,305 $ 458,718 $ 2,372,982 $ 1,180,130 $ 30,968 $ 7,857,701Current period gross charge-offs $ — $ 71 $ 114 $ 61 $ 52 $ 611 $ — $ — $ 909 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis TotalResidential Lending Residential Mortgage FICO: 740 and greater $ 28,332 $ 207,263 $ 524,402 $ 987,343 $ 521,598 $ 1,186,496 $ — $ — $ 3,455,434680 - 739 1,525 36,569 67,192 115,481 67,662 158,890 — — 447,319620 - 679 910 2,910 16,268 19,056 12,733 41,573 — — 93,450550 - 619 — 1,303 6,506 1,903 2,477 11,685 — — 23,874Less than 550 — — — 2,894 2,006 6,686 — — 11,586No Score (3) — 9,081 20,505 11,400 6,006 58,777 — — 105,769Other (2) 1,419 13,320 16,937 15,740 12,088 32,590 12,976 — 105,070Total Residential Mortgage 32,186 270,446 651,810 1,153,817 624,570 1,496,697 12,976 — 4,242,502Current period gross charge-offs — — — — — — — — — Home Equity Line FICO: 740 and greater — — — — — — 943,792 1,428 945,220680 - 739 — — — — — — 162,578 1,886 164,464620 - 679 — — — — — — 33,728 927 34,655550 - 619 — — — — — — 13,382 971 14,353Less than 550 — — — — — — 5,392 296 5,688No Score (3) — — — — — — 1,398 — 1,398Total Home Equity Line — — — — — — 1,160,270 5,508 1,165,778Current period gross charge-offs — — — — — — — — — Total Residential Lending $ 32,186 $ 270,446 $ 651,810 $ 1,153,817 $ 624,570 $ 1,496,697 $ 1,173,246 $ 5,508 $ 5,408,280Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Lending FICO: 740 and greater 18,671 82,551 113,914 66,175 28,100 22,442 116,198 138 448,189680 - 739 13,464 64,229 64,623 33,167 14,755 13,951 75,151 439 279,779620 - 679 4,293 28,729 27,210 15,641 6,793 10,003 35,179 791 128,639550 - 619 620 6,973 11,551 7,621 4,025 6,289 13,452 795 51,326Less than 550 110 2,634 6,734 5,075 2,837 4,179 5,782 646 27,997No Score (3) 733 839 209 — 9 16 39,466 256 41,528Other (2) — 304 349 960 330 1,032 73,794 — 76,769Total Consumer Lending $ 37,891 $ 186,259 $ 224,590 $ 128,639 $ 56,849 $ 57,912 $ 359,022 $ 3,065 $ 1,054,227Current period gross charge-offs $ — $ 437 $ 904 $ 496 $ 272 $ 769 $ 1,789 $ 187 $ 4,854 Total Loans and Leases $ 191,272 $ 1,230,117 $ 2,477,391 $ 2,601,761 $ 1,140,137 $ 3,927,591 $ 2,712,398 $ 39,541 $ 14,320,208Current period gross charge-offs $ — $ 508 $ 1,018 $ 557 $ 324 $ 1,380 $ 1,789 $ 187 $ 5,763 _____________________________ (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance. GAAP to Non-GAAP Reconciliation Table 12 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Income Statement Data: Net income $ 54,220 $47,502 $66,818 Average total stockholders' equity $ 2,496,840 $2,374,669 $2,299,422 Less: average goodwill 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,501,348 $1,379,177 $1,303,930 Average total assets $ 24,187,207 $24,404,727 $24,548,124 Less: average goodwill 995,492 995,492 995,492 Average tangible assets $ 23,191,715 $23,409,235 $23,552,632 Return on average total stockholders' equity(1) 8.73% 7.94% 11.78%Return on average tangible stockholders' equity (non-GAAP)(1) 14.53% 13.66% 20.78% Return on average total assets(1) 0.90% 0.77% 1.10%Return on average tangible assets (non-GAAP)(1) 0.94% 0.81% 1.15% As of As of As of March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2024 2023 2023 Balance Sheet Data: Total stockholders' equity $ 2,513,761 $2,486,066 $2,329,012 Less: goodwill 995,492 995,492 995,492 Tangible stockholders' equity $ 1,518,269 $1,490,574 $1,333,520 Total assets $ 24,279,186 $24,926,474 $24,884,207 Less: goodwill 995,492 995,492 995,492 Tangible assets $ 23,283,694 $23,930,982 $23,888,715 Shares outstanding 127,841,908 127,618,761 127,573,680 Total stockholders' equity to total assets 10.35% 9.97% 9.36%Tangible stockholders' equity to tangible assets (non-GAAP) 6.52% 6.23% 5.58% Book value per share $ 19.66 $19.48 $18.26 Tangible book value per share (non-GAAP) $ 11.88 $11.68 $10.45 _____________________________ (1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.